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A company's 5-year bonds are yielding 7% per year. Treasury bonds with the same maturity are yielding 5,2% per year, and the real risk-free interest
A company's 5-year bonds are yielding 7% per year. Treasury bonds with the same maturity are yielding 5,2% per year, and the real risk-free interest rate (r*)is 2,75%. The average inflation premium is 2,05%. If the liquidity premium is 0,7%, what is the default risk premium on the corporate bonds? please help
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